Tax season can be stressful. From gathering receipts to navigating complex forms, it’s easy to feel overwhelmed. One form that often raises questions is Form 8821, Tax Information Authorization. This guide will break down everything you need to know about Form 8821 for 2024, simplifying the process and putting your mind at ease.
Key Takeaways:
- Form 8821 authorizes a designated individual or entity to access your confidential tax information.
- The form is required for disclosures unrelated to resolving tax matters with the IRS (e.g., income verification for a loan).
- You have 120 days to submit the form for non-IRS related disclosures after signing it.
- Form 8821 does not authorize your designee to represent you before the IRS. Form 2848 is required for representation.
- Submitting the form online, via fax, or by mail all take approximately five weeks to process.
What is Form 8821?
Form 8821 allows you to grant access to your confidential tax information to a designated individual, corporation, firm, organization, or partnership. It can also be used to revoke or modify existing authorizations. While you can submit an authorization request without using the official form, it must contain all the information required on Form 8821.
When Do You Need to File Form 8821?
You need Form 8821 when authorizing the disclosure of your tax information for reasons other than resolving a tax issue with the IRS. Common examples include income verification for loans, mortgages, or other financial purposes. Remember the 120-day submission deadline after signing for these non-IRS related requests.
Getting Copies of Your Tax Information
Need a copy of your tax return information? You can order a tax transcript online through the IRS website (https://www.irs.gov/individuals/get-transcript). Transcripts are frequently used for income verification purposes. If you need a photocopy of your original return, use Form 4506, Request for Copy of Tax Return, but note that this service incurs a fee.
IRS Processing Time for Form 8821
The IRS estimates a processing time of approximately five weeks for Form 8821, regardless of submission method (online, fax, or mail).
2024 Update and Completing Form 8821
The January 2021 revision of Form 8821 is still valid for 2024. The only change is an update to Line 3 (Tax Information), which now lists the years 2024-2026. Always use the latest version available on the IRS website: https://www.irs.gov/forms-pubs/about-form-8821
Here’s a breakdown of how to complete the form:
Line 1 – Personal Information: Provide your name, address, phone number, and Taxpayer Identification Number (TIN). For businesses, provide the entity name, Employer Identification Number (EIN), and business address. Trusts and estates should follow the specific instructions on the form.
Line 2 – Designee: Enter the designee’s full name and their Centralized Authorization File (CAF) number. If they don’t have a CAF number, write “NONE.” You can list multiple designees.
Line 3 – Tax Information: Specify the type of tax information, the tax form number, and the specific tax years (2024-2026 are pre-printed). Avoid vague terms like “all years.”
Line 4 – Specific Use Not Recorded on CAF: Check this box for specific situations outlined in the form instructions, such as requests from loan companies or background checks. Your designee will then send Form 8821 directly to the appropriate IRS office.
Line 5 – Retention/Revocation of Prior Tax Information Authorization: If Line 4 is checked, skip this line. Otherwise, indicate whether you want to retain or revoke prior authorizations.
Line 6 – Signature of Taxpayer: Sign and date the form. The authorized signatory varies based on the taxpayer type (individual, corporation, partnership, etc.). The form instructions detail who is authorized to sign. Acceptable electronic signature methods are also outlined in the instructions.
Submitting Form 8821
Submit Form 8821 online, by fax, or by mail according to the instructions provided with the form.
Need Help?
Still have questions? Contact a qualified tax professional for personalized guidance. They can help ensure you complete and submit Form 8821 correctly and address any specific concerns you may have.